Hanwha Ocean Flags Rising Uncertainty Over Ship Demand

South Korean shipbuilder Hanwha Ocean said in its first-quarter earnings presentation on Monday that uncertainty is rising over demand for commercial vessels due to the ongoing conflict in the Middle East.

The market for very large crude carriers (VLCCs) has been hit hard by the Iran war, the company said, as shipping rates have soared with some crude carriers stuck in the Strait of Hormuz.

The demand for container vessels is forecast to decline as worries mount over inflation and the slow growth of the global economy amid the war, the company said.

In the long term, demand for commercial vessels is expected to rise as countries seek to diversify supplies of crude oil, Hanwha said.

(Reuters - Reporting by Heejin KimEditing by Ed Davies)